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posted Jan 15, 2024 8:34:19 AM

Maryland does not tax Social Security Benefits - why is my Maryland rebate reduces when SSA-1099 benefits are added to income in the Federal return?

My Maryland rebate reduces when SSA-1099 benefits are added to income in the Federal return.

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1 Best answer
Level 15
Jan 15, 2024 9:31:26 AM

Unless you have not reported any Forms 1099-R for distributions from employer plans, the behavior that you are observing is likely the result of the limit for the Maryland pension exclusion being reduced by the amount of the individual's Social Security income, resulting in an increase in the amount of taxable pension distributions.  It's not that the Social Security payments themselves are being taxed.  The Maryland pension exclusion appears on Form 502 line 10a.

2 Replies
Level 15
Jan 15, 2024 8:37:09 AM

Check to see if you entered your SSA1099 in the right place on your federal form.

 

 Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

Level 15
Jan 15, 2024 9:31:26 AM

Unless you have not reported any Forms 1099-R for distributions from employer plans, the behavior that you are observing is likely the result of the limit for the Maryland pension exclusion being reduced by the amount of the individual's Social Security income, resulting in an increase in the amount of taxable pension distributions.  It's not that the Social Security payments themselves are being taxed.  The Maryland pension exclusion appears on Form 502 line 10a.